What this ETF is trying to do

The Tortoise Pipeline & Energy Fund Inc (TTP) is an ETF listed on the NYSE. Based on its name, it focuses on the pipeline and energy sectors.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes those price changes plus any cash distributions paid to investors.

According to the data:

• One-Year Returns: The one-year price return was approximately 71.82%. However, the one-year total return was higher, at approximately 83.59%.

• Year-to-Date (YTD) Returns: The YTD price return is approximately 69.37%, while the YTD total return is approximately 80.97%.

• Three-Year Returns: Over three years, the price return was approximately 122.38%, and the total return was approximately 182.94%.

To see how this looks in real money, imagine you had $10,000 invested roughly one year ago at the estimated price of $27.71 per share. Based only on the share-price change (the price return), your investment would have grown to approximately $17,180 before adding any cash distributions.

Income and distribution explanation

This ETF provides cash to investors through distributions. The distribution yield is approximately 5.32%. This number describes the cash paid out relative to the current share price. Over the last 12 months, the trailing distributions were $2.535 per share. These payments usually happen on a quarterly basis. It is important to remember that a high distribution yield does not mean you earned that same percentage as your total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling share price can look like erosion, they are not always the same thing. For this ETF, there is no severe erosion-risk flag. The erosion-risk score was not provided because the fund has a history of stock splits.

Pros

• The ETF has shown strong positive price returns and total returns over the last year and three years.

• It provides regular cash distributions, usually every quarter.

Cons

• Specific data regarding the fund's top holdings was not supplied in this report.

Beginner takeaway

When investing, always look at both the price return and the total return to get the full picture. A high distribution yield can provide extra cash, but it is not a guarantee of how much your total investment will grow or shrink. Always check if the share price is growing alongside those distributions.